Berenberg Expects Sustained Outperformance from L'Oreal After 'Strong' H1 Results; Price Target Up

02:53 AM EDT, 08/10/2026 (MT Newswires) -- Berenberg updated its price target and earnings forecasts for L'Oréal (OR.PA), citing a "strong" first-half execution and its belief in the cosmetics giant's ability to continuously outpace the market. "Q226 adjusted [like-for-like] sales growth of 6.3% came in 70 [basis points] ahead of consensus forecasts. Investments behind its stimulus plan continue to bear fruit, as evidenced by the acceleration of the sales growth contribution from new launches to c250bp in H126 from c200bp in H225 (c100bp in H125). Performance was supported by improved beauty market growth, and management remains confident in the outlook for the remainder of FY26," the research firm said Monday. Against this backdrop, Berenberg revised its full-year 2026 to 2028 projections, including raising its sales estimates by 1.2%, 1.7% and 2.2%, respectively. The updated estimates also took into account analysts' "refreshed" foreign exchange forecasts. "We maintain our constructive view on the dynamic beauty industry and believe L'Oréal is poised to continue to outperform the market. We maintain a Buy rating with a new price target of EUR442 (previously EUR435)," analysts added.